Global Capability Centers (GCCs) have transformed significantly from their initial role as cost-saving extensions of corporate headquarters. These centers have progressed from primarily providing support functions and IT assistance to becoming key players in product innovation, customer interaction, and driving enterprise growth. India has emerged as a crucial hub, enabling businesses to innovate rapidly, enhance service delivery to global clients, and successfully enter new markets.
The evolution of GCCs parallels the progression of global enterprises. Initially, their focus was on cost reduction, process efficiency, and continuous support. Over time, they expanded their responsibilities to include quality assurance, product testing, and comprehensive product engineering. The current trend indicates a clear shift towards complete product design, direct engagement with customers, and a significant influence on enterprise strategy.
Several factors facilitate this transition: mature processes and governance frameworks that enhance credibility with headquarters, talent mobility fostering a global mindset, and India’s rise as a conduit to the Asia-Pacific and emerging markets. As a result, GCCs have transcended their traditional ‘back-office’ designation and are now integral participants in enterprise strategy.
Cultural alignment has emerged as a critical differentiator for the effectiveness of GCCs. Successful entities cultivate a seamless integration of their parent organization’s values, encompassing office environments, leadership engagement, and global innovation challenges. This cultural cohesion fosters collaboration, accountability, and trust across different locations. Furthermore, GCCs are evolving into Global Cultural Centers that not only reflect their enterprise’s identity but also shape local ecosystems of universities, startups, and governmental partnerships, thereby reinforcing India’s status as a global innovation hub.
However, culture alone is insufficient; effective leadership is essential for driving GCC growth. Leaders who adopt an ownership mindset by proposing solutions, establishing accelerators, and openly communicating capabilities can secure a place at the global strategy table. Future GCC leaders must blend operational excellence with a vision, empathy for customer needs, and the capacity to influence business priorities and overall enterprise strategy. Centers that focus on developing such leaders shift from mere execution units to strategic drivers of enterprise transformation.
Technology, especially artificial intelligence (AI), has become a pivotal lever for GCC growth. In engineering, AI automates routine tasks, accelerates the modernization of legacy systems, and enhances developers’ efficiency across various technologies. Generative AI and Agentic AI are pioneering new productivity models and fostering experimentation. Beyond engineering, GCCs are leveraging AI to impact critical business outcomes, from customer engagement to operational transformation. Service providers play a crucial role, supplying frameworks, accelerators, and collaborative platforms that enable GCCs to scale effectively.
The emergence of GCC-as-a-Service is reshaping the corporate landscape. Organizations can now establish or expand operations without significant capital investments by relying on service providers for talent, infrastructure, and governance within a turnkey model. This evolution broadens the reach of GCCs beyond large multinational corporations, offering mid-sized enterprises new opportunities for effective globalization. Service providers are increasingly acting as co-creators, embedding best practices and accountability into every phase of GCC operations.
Today, GCCs in India are no longer viewed solely as cost centers; they are strategic assets driving enterprise transformation. Sustainable success will hinge on cultural alignment, leadership driven by an ownership mentality, and the smart application of AI. With its highly skilled workforce, digital readiness, and robust ecosystem, India is exceptionally positioned to lead this new wave of innovation. Enterprises that recognize GCCs as engines of global innovation, along with the service providers that support them, stand to unlock unprecedented growth opportunities in the forthcoming decade.
The author of this analysis is Anil Katakam, Co-Founder and COO of Innominds.
Disclaimer: The opinions expressed here are the author’s and do not necessarily reflect the views of ETCIO. ETCIO is not liable for any damage incurred by individuals or organizations directly or indirectly related to this content.
Published on Nov 10, 2025, at 09:00 AM IST.
